Dubai sets up property mediation committee

Six-member panel under Land Department to mediate in developer-investor disputes

By

Parag Deulgaonkar

PublishedWednesday, December 08, 2010

Dubai Executive Council's decree 6 of 2010 gives the Land department the authority to act as a mediator. (FILE)

The Land Department of Dubai has set up a six-member mediation committee that will help mitigate disputes between the developer and investor, Emirates 24/7 can reveal.

Mohammed Sultan Thani, Assistant Director General, Land Department, told this website: "Most of the people are in dispute because there is lack of interaction. We want to solve issues by bringing them face-to-face, and try and resolve their issues."

Either of the aggrieved parties (developer or investor) has to draft a formal letter to the department, which will be forwarded to the DLD Director-General. Only after his approval, the department will notify the other party and will try mediate, if the second party agrees, for an amicable solution.

“The cases that will be dealt by the committee will be the ones forwarded by Director-General,” he added.

Dubai Executive Council's decree 6 of 2010 gives the department the authority to act as a mediation service for disputes between developers and purchasers.

In April, the Department had said it was in favour of resolving issues between the developer and the investor through mediation rather than initiating legal action against defaulters after investors complained of getting terminationnotices for failing to meet their financial obligations.

On Tuesday, this website reported that the department’s legal section has helped developers and buyers mutually resolve disputes in 1,898 cases from January 1, till October 31, 2010.

Real Estate Regulatory Agency (Rera) CEO Marwan Bin Ghalita was earlier quoted by Arabian Business that many construction projects that look unlikely ever to be finished will be cancelled in 2011.

“You will see a lot of cancellations [in 2011] for projects that have no benefit for Dubai or for the investor.... If a project is not feasible for Dubai’s economy, it will be cancelled. And owners will have the right to know it… Yes, there will be cancellations… If a project does not add to Dubai’s economy, it will be cancelled.”

According to Rera CEO, they have cancelled 115 projects that existed only as architects’ drawings, but “less than ten” projects upon which construction had started.